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Making The Most of Today’s Pricing Greater New York Postal Customer Council – June 17, 2009

Making The Most of Today’s Pricing Greater New York Postal Customer Council – June 17, 2009. Eddie Mayhew’s Classification Station P. O. Box 289 Lake Hiawatha NJ 07034-0289. First-Class Mail Standard Mail Periodicals Package Services Special Services.

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Making The Most of Today’s Pricing Greater New York Postal Customer Council – June 17, 2009

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  1. Making The Most of Today’s PricingGreater New York Postal Customer Council – June 17, 2009 Eddie Mayhew’s Classification Station P. O. Box 289 Lake Hiawatha NJ 07034-0289

  2. First-Class Mail Standard Mail Periodicals Package Services Special Services Mailing Services - 89% total revenue First-Class Mail: 58% Standard Mail: 31% Periodicals: 4% Special Services: 4% Package Services: 3% Eddie Mayhew’s Classification Station P. O. Box 289 Lake Hiawatha NJ 07034-0289

  3. Consumer Price Index (CPI) cap Annual, (not so) predictable price changes 2.4 percent for April 2009 Announce in February and implement in May Mailing Services New Mailing Services Prices – May 11, 2009

  4. Average +3.78% First-Class Mail Eddie Mayhew’s Classification Station P. O. Box 289 Lake Hiawatha NJ 07034-0289

  5. Letters: 44¢ (+2¢) Flats: 88¢ (+5¢) Parcels: $1.22 (+5¢) Postcards: 28¢ (+1¢) Unchanged: Additional ounce Nonmachinable surcharge First-Class Mail – Single-Piece The Answer for Personal Mail Eddie Mayhew’s Classification Station P. O. Box 289 Lake Hiawatha NJ 07034-0289

  6. Align auto and machinable letter characteristics Everything except Mixed AADC is now an option While there are options there are still reasons to make the breakdowns: - Faster delivery – 2.2 cent initiative for 5-digit – 2nd oz. for automation the same as last year First-Class Mail – Commercial Eddie Mayhew’s Classification Station P. O. Box 289 Lake Hiawatha NJ 07034-0289

  7. Because Automation is faster and less expensive The first ounce for : - Single Piece is 44 cents – Presort is 41.4 cents – POSTNET Bar Code is 33.5 cents – With IMB code on 11/29, 33.2 cents Sorting to Mixed AADC is 38.2 while 5-digit is 33.5 Why Automation – Why Intelligent Mail Barcode? Eddie Mayhew’s Classification Station P. O. Box 289 Lake Hiawatha NJ 07034-0289

  8. Average +3.78% Standard Mail Eddie Mayhew’s Classification Station P. O. Box 289 Lake Hiawatha NJ 07034-0289

  9. Align auto and machinable letter characteristics Provide choices Optional 5-digit, 3-digit, and AADC preparation for auto letters Optional AADC preparation for machinable letters NEW - - Move Update compliance Standard Mail – Best Practices Eddie Mayhew’s Classification Station P. O. Box 289 Lake Hiawatha NJ 07034-0289

  10. Because Automation is faster and less expensive If it weighs 3.3 ounces or less: - Non-automation Mixed ADC is 57.8 cents per piece Use 5-Digit Automation and the price drops to 23.3 cents You can’t pass up a discount of more than 34 cents Full Service IMB saves another tenth of a penny Why Automation – Why Intelligent Mail Barcode? Eddie Mayhew’s Classification Station P. O. Box 289 Lake Hiawatha NJ 07034-0289

  11. Irregular parcels/NFMs (less than 6 ounces) 3-digit changes to SCF ADC and MADC changes to BMC and MBMC Origin entry BMC prices limited to pallets MBMC prices for other preparation The NFMs become parcels in 2010 Current difference in postage is nearly 40 cents for a flat but $1.56 for an NFM Drop ship entry 5-digit, SCF, and BMC prices Standard Mail – Packages Eddie Mayhew’s Classification Station P. O. Box 289 Lake Hiawatha NJ 07034-0289

  12. Machinable parcels/NFMs(6 ounces and over) Origin entry BMC prices limited to pallets MBMC prices for other preparation Based on the previous slide this adds an additional 20 cents to the price. Drop ship entry 5-digit and BMC prices Standard Mail – Packages Eddie Mayhew’s Classification Station P. O. Box 289 Lake Hiawatha NJ 07034-0289

  13. Lower-than-average price increase: +2.9% However, it is against an already high price. Lowered some pound rates to encourage more content Look at Summer Sale possibilities to save a much as 30% on some part of your volume Standard Mail – Catalogs Eddie Mayhew’s Classification Station P. O. Box 289 Lake Hiawatha NJ 07034-0289

  14. Average +3.97% Periodicals – Changes? – No but Yes! No preparation changes Think Copalletization, Comailing Look at preparation for MX ADC to 3- Digit for best value Free address correction service with full-service Intelligent Mail option Eddie Mayhew’s Classification Station P. O. Box 289 Lake Hiawatha NJ 07034-0289

  15. Average +3.80% Package Services – not much except BPM flats • Simplify Parcel Post • Remove BMC designations, Local Zone, and nonmachinable surcharge • Best savings – keep Bound Printed Matter material under 20 ounces and less than .75 inches thick and instead of a 2.5% increase – get a 2.0% decrease Eddie Mayhew’s Classification Station P. O. Box 289 Lake Hiawatha NJ 07034-0289

  16. It isn’t quite the brick wall you think! Eddie Mayhew’s Classification Station P. O. Box 289 Lake Hiawatha NJ 07034-0289

  17. The End – Questions Eddie Mayhew’s Classification Station P. O. Box 289 Lake Hiawatha NJ 07034-0289

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